In a recent discussion, Katie Stockton, founder and managing partner of Fairlead Strategies, analyzed market trends and signals, particularly focusing on low volatility and potential pullbacks in the S&P 500. Over the past few weeks, she has recommended hedging strategies as the market has demonstrated a strong upward trajectory, yet warns that this may be a “calm before the storm.” Stockton emphasized the need to monitor the VIX, noting that it indicates heightened risk when it surpasses its 200-day moving average. She expressed concerns regarding the divergence between Bitcoin and the NASDAQ, highlighting that Bitcoin, often seen as a risk asset, is pulling back while the NASDAQ climbs, a trend she finds troubling in the short term. Additionally, she discussed the current state of treasury yields, predicting a sideways to lower trend, which indicates potential support for continued equity bull markets. Stockton remains optimistic but anticipates ongoing corrective phases, especially with commodities like copper and oil showing significant retracements. Overall, she advises caution, suggesting the market may need more time for consolidation or pullbacks to navigate future movements effectively.